Students are prepared to fork out 156% more on tuition than the maximum universities are able to charge, as a more discerning audience emerges.
- Students in England are prepared to pay almost £23,000 a year on tuition fees to access higher education
- Despite the unrelenting demand for a British education, estimates suggest that only 25% of the total student population has access to PBSA
- £6 billion will have been invested in the UK’s number one asset by the end of 2015 but experts fear that demand for PBSA will outstrip all supply
The appeal of a British education shows no signs of losing its allure as the purpose-built student accommodation (PBSA) market continues to represent a significant opportunity for investors.
When asked the maximum level they’d be willing to spend on tuition, a survey of students at one Russell Group institution in England gave a mean average response of £22,270. Currently £9,000 is the maximum fee UK universities are permitted to charge.
Although the results, presented at the recent annual conference of the Society for Research into Higher Education, show that students believe the ideal tuition fee amount should be £3,810, the idea of scholars preparing to fork out almost 156% more than the current cap underlines the enduring appeal of attending university in the UK – and the importance they place on their university experience.
Elizabeth Staddon, Senior Education Developer at the University of the Arts London, said that students responding to the survey were unperturbed about debt levels, instead being prepared to pay back loans from the salaries of the future career their education will provide them with.
Almost three million students study in the UK, but it’s estimated that 75% of them have no access to PBSA. This undersupply, along with the market’s stability, has helped cement PBSA as the UK’s number one asset class, with estimates suggesting that £6 billion will have been invested into the sector by the end of 2015.